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Ralph Lauren Corporation RL has retained its solid market foothold by focusing on brand elevation, a diversified growth strategy and its Next Great Chapter: Accelerate plan.
RL stock has been trending up the charts in the past year, recording growth of 44.5%. This growth comfortably outpaces the broader Consumer Discretionary sector’s return of 12.5% and the Zacks Textile - Apparel industry‘s loss of 12.5% in the same period. RL’s shares have also surpassed the S&P 500 index’s appreciation of 10.5% in a year.
Currently priced at $237.19, Ralph Lauren stock is trading at an 18% discount to its 52-week high of $289.33, reached on Feb. 6. However, it is trading at a 52.1% premium to its 52-week low mark.
RL’s Strategies Aid the Rally
Ralph Lauren’s performance is supported by its progress on the ‘Next Great Chapter: Accelerate Plan’ and digital efforts. As part of the plan, the company is focused on elevating its lifestyle brand, expanding its core and other businesses, and strengthening its presence in key cities.
The company is enhancing its global lifestyle brands by offering premium products that align with the evolving consumer preferences. Its strategy, which includes product elevation, personalized promotions, disciplined inventory management and a favorable channel and geographic mix, is proving effective.
RL continues to invest in key priorities like marketing, digital growth and expansion of its ecosystem in major cities. The company’s direct-to-consumer (DTC) channels, including stores and digital commerce, are performing well, with significant progress in mobile, omnichannel and fulfillment investments. In the latest quarter, RL added 1.9 million new consumers to its DTC business, with digital sales increasing 14% in Europe and 29% in Asia.
Additionally, Ralph Lauren is experiencing strong gains across its retail and wholesale channels, buoyed by solid reorder trends, brand momentum, strong AUR growth and full-price sell-through. Overall, such channels are performing well on the back of the company’s strategic brand elevation, disciplined inventory management and digital investments.
RL Price Performance
Image Source: Zacks Investment Research
Challenges RL Might Face Ahead
Ralph Lauren, like other lifestyle brands, faces macroeconomic challenges such as inflation, supply-chain issues and shifting consumer behavior. Adverse foreign currency impacts are other deterrents for RL.
The company has been facing high-cost concerns for a while. Adjusted operating expenses increased 10% year over year during the third quarter of fiscal 2025. Management expects marketing expenses to be about 7% of sales in fiscal 2025, implying lower spending in the second half, particularly in the fourth quarter.